CLEARER SOLUTIONS LIE AHEAD
MAX. ISSUE SIZE (Rs) : 153 crores
PRICE BAND (Rs) : 675 - 730
ISSUE OPENS/CLOSES : 1st August to 7th August, 2007
LISTING : NSE, BSE
Take Solutions is primarily an IT products company with its prominent verticals being supply chain management and life sciences. While they contribute almost equally to the company’s revenues, its product offerings number 16 products in the supply chain management segment and six in the life sciences segment.
The primary issue objective seems to be repayment of debt raised for an earlier acquisition. The balance has been earmarked to develop domestic facilities and new products and also to repay term loans.
Its key markets are the US and Asia Pacific regions, suggesting the likelihood of its being impacted by the depreciating US dollar. Thus, Take Solutions needs an European footprint suggesting that the inorganic route needs to be better explored.
Though a low base effect has translated into seemingly vertical growth in its topline and bottomline, a fluctuating Operating Profit Margin acts as a red herring.
While the company is engaged in potent product segments and there is unmistakable growth potential, the fact is, its ability to manage scalability and develop unique products could hold the key to the fortunes of its investors.
In this context, the pricing of this IPO at P/E multiple of 28 which places it at a premium to other listed IT product companies, undermines immediate prospects for investors. Longer term investors though would do well to watch over this company’s possible European foray and the development of unique products.
MAX. ISSUE SIZE (Rs) : 153 crores
PRICE BAND (Rs) : 675 - 730
ISSUE OPENS/CLOSES : 1st August to 7th August, 2007
LISTING : NSE, BSE
Take Solutions is primarily an IT products company with its prominent verticals being supply chain management and life sciences. While they contribute almost equally to the company’s revenues, its product offerings number 16 products in the supply chain management segment and six in the life sciences segment.
The primary issue objective seems to be repayment of debt raised for an earlier acquisition. The balance has been earmarked to develop domestic facilities and new products and also to repay term loans.
Its key markets are the US and Asia Pacific regions, suggesting the likelihood of its being impacted by the depreciating US dollar. Thus, Take Solutions needs an European footprint suggesting that the inorganic route needs to be better explored.
Though a low base effect has translated into seemingly vertical growth in its topline and bottomline, a fluctuating Operating Profit Margin acts as a red herring.
While the company is engaged in potent product segments and there is unmistakable growth potential, the fact is, its ability to manage scalability and develop unique products could hold the key to the fortunes of its investors.
In this context, the pricing of this IPO at P/E multiple of 28 which places it at a premium to other listed IT product companies, undermines immediate prospects for investors. Longer term investors though would do well to watch over this company’s possible European foray and the development of unique products.
